How many entrance strategies should i know for wholesaling?

Question

if i were to wholesale, these are my different options to get the property under contract.

Cash deal- big discount on price

Owner Financing- they need finance the equity and i pay off whatever mortgage they have left. They do this if they dont need the cash proceeds right away, and they make money off of the interest.

Subject to- they have little to no equity. they deed me the property but the note stays in their name. i lease the property out or fix and flip it

Lease Option- i sublet the property and sell it through lessees.

Any other strategies? and are all those accurate?

Steve Vaughan · Answer

I don't wholesale much because I like to keep and own assets that pay me over and over, but you have the right idea Account Closed.

Definitely offer seller financing, sub2 and lease options as additional scenarios. I think a lot of wholesalers lose quality leads by only offering cash at 70% minus repairs!

I offer with a letter of intent and offer 3 scenarios - cash, SF at a higher price, LO at an even higher price. Sub2 and LOs are best for pretty houses with low equity I have found.

You are close with your descriptions of seller financing and lease options, but close only counts with horseshoes, hand grenades and stretching carpet.

Not all SF transactions pay off the existing mortgage. Research Wraps. Lease options aren't 'sold' through the leases, but when you or the TB actually exercises the option and purchases the property.

You're on the right track. Make sure you keep some if you can to get out of the wholesaling rat race someday!

Jay Hinrichs · Answer

@Steve Vaughan I may be wrong but I think lease options in TExas are illegal that over a certain period of time.

although fine minds think alike.. I have been doing the A B C in my purchase contracts for longer than I can remember.. starting in the late 70s .

A Cash

B cash and seller finance

C cash and 3rd party loan.

D Sub too.. but for me I would not buy sub too unless it had substantial equity I always wanted room in the deal no matter how I bought it.. never made much sense to me watching people pay full retail sub too.. margins just too thin.. and I did not have a burning desire to have rentals that made 100 a month LOL..

Account Closed · Answer

@Steve Vaughan

thank you steve! some of the best advice ive heard

Steve Vaughan · Answer

@Jay Hinrichs - good points about TX LOs and sub2. I didn't notice Jeff was from TX.

From what I understand, lease options are legal in TX, just not sandwich lease options (SLOs) where the investor stays in the middle and takes a monthly spread. Those are risky for us anyway. Cheers!

Account Closed · Answer

anyone suggest any good books or coaching for learning sub2?

Account Closed · Answer

@Jay Hinrichs

thanks Jay,

great advice.

Any books or coaching you guys would suggest to learning Subject to deals?

Account Closed · Answer

#2 id take this approach

Account Closed · Answer

#1

Account Closed · Answer

in which order should i approach these?

How many entrance strategies should i know for wholesaling?

How many entrance strategies should i know for wholesaling?

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